While the market selloff this week has been very disappointing, one positive is that it has brought the prices of some popular dividend shares down to more attractive levels.
Three high yield dividend shares that I would consider buying when the dust settles are as follows:
Australia and New Zealand Banking Group (ASX: ANZ)
As well as the market meltdown, the Royal Commission has been a major drag on the share prices of the big four banks this year. And while the Commission is not over yet, the end is finally in sight and the final report is due to be submitted to the Governor-General on February 1. I believe that once this report and its recommendations are revealed and accounted for, investors are likely to return to the banks once again. Especially given how cheap their shares are looking right now and the generous dividends they offer. ANZ Bank’s shares offer a trailing fully franked 6.3% dividend.
Dicker Data Ltd (ASX: DDR)
The shares of this founder-led computer software and hardware wholesale distributor have pulled back by around 12% from their 52-week high due to recent market volatility. With the Dicker Data board intent on paying an 18 cents per share fully franked full year dividend in quarterly instalments this year, this means its shares now offer a generous forward yield of 6.3%. I think this makes it a great option for income investors.
Super Retail Group Ltd (ASX: SUL)
Another cheap dividend share that I think is worth considering is Super Retail Group. The company behind brands such as Super Cheap Auto and Macpac has seen its shares fall so heavily in recent months that they now change hands at just 10x earnings. While the retail sector is admittedly a tough place to be right now, Super Retail recently reported that it has achieved solid same stores sales growth so far in FY 2019. This could make its shares and their trailing fully franked 6.6% dividend a great option for income investors.
And here is a fourth dividend share that I believe has significant growth potential over the coming years.
You might not know this market leader's name, but it's rapidly expanding into a highly profitable niche market here in Australia. Even better, the shares boast a strong, fully franked dividend that should balloon in the years to come. In other words, we're looking at the holy grail of incredible long-term growth potential AND income you can watch accruing in your account in real time!
Simply click here to grab your FREE copy of this up-to-the-minute research report on our #1 dividend share recommendation now.
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Dicker Data Limited. The Motley Fool Australia owns shares of Super Retail Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.